Film Investment Exchange The film industry is arguably one of the biggest industries of our time. In 2019, the global box office was worth $42.2 billion. When including box office and home entertainment revenue, the global film industry or “show biz” as people like to call it was worth a record-breaking $136 billion in 2018. Before the pandemic, around 800 films were produced each year, increasing by about 5-10% on a yearly basis. A large part of these movies are produced by big production houses that have a huge amount of budget for each movie. The top-grossing movie” Avengers: Endgame” was made on a budget of $356 million USD. But the other side of the coins doesn’t look too good. More than 35% of the planned movies are stopped before production starts or are unable to get the movie to the quality they first imagined it to be, only because of insufficient funding.
Our product CineTrade is an open investment platform for the general public to become active participants in making the movies they love. The users buy CineCoins to sponsor or invest in the movie’s production budget and in return, they are provided with huge returns from the box office and home entertainment revenue collected. The users will be provided adequate information regarding the production house, directors, actors, production crew and any other information required to help the users make the right choice of investments. The production house gets to choose an underwriter firm who will jointly decide the amount of CineCoins’ to be available for buying and selling. Throughout the process, the production houses will post constant updates regarding the movies, including a popularity Index, production details, teasers, trailers etc. to hype up the audience for their movie resulting in more investment from users. After the movie has been released, the CineCoins closes for the respective movie. Depending on the percentage of investment made by the individual, the revenue generated in the next year from the box office and home entertainment means will be returned as incentives to the users for believing in and supporting the movie. CineTrade provides a level playing field, helping new and small production houses get the same recognition from the public. Eventually resulting in more investments from users.
This platform has the potential to change the oligopoly of big production houses and provide a whole new system to raise money for films in the future. Changing how insufficient funds were the cause of failure of many transformative ideas from young minds all over the world. All while providing a way to earn money from entertainment.